EBA Seeks Leverage Caps and Certifications for EU Stablecoin Lenders

The European Banking Authority (EBA) has proposed restrictions on stablecoin lending for EU-based crypto firms. The regulator wants the EU to examine rules for DeFi gateways, including leverage caps and certification of lending protocols.

The EBA's proposal comes as some EU countries are considering their own approaches to regulating crypto assets. A European Commission official emphasized that the goal is not to ban stablecoins but to ensure they operate safely and transparently within the EU market.

Some experts welcome the move, saying it will help prevent potential instability in the financial system caused by unregulated lending protocols.